What legal basis does Sabah claim for the State Sales Tax on petroleum?

Question

Accepted Answer

Sabah's Legal Claim for State Sales Tax on Petroleum

The Sabah government asserts its legal right to collect State Sales Tax (SST) on petroleum products based on the State Sales Tax Enactment 1988. This legislative framework underpins the state's authority to levy such taxes on the sale of specific goods, including those derived from petroleum. The government's position is that companies operating within Sabah that are involved in the sale of these products are subject to this taxation.
State Sales Tax Enactment 1988 as the Basis

The State Sales Tax Enactment 1988 is the foundational legislation upon which the Sabah government bases its claim for SST on petroleum sales. This enactment provides the legal authority for the state to impose and collect sales tax. The government explicitly states that its pursuit of outstanding SST from companies like Repsol Oil and Gas Ltd (Repsol) and SEA Hibiscus Sdn Bhd (SEAH) is in strict accordance with this law.
Licensing of Taxable Persons

Further solidifying its legal standing, the Sabah government highlights that both Repsol and SEA Hibiscus had previously applied to the Sabah Ministry of Finance. Following these applications, the companies were issued licenses as 'taxable persons' under the State Sales Tax Regulations 1999. This licensing process indicates that the companies were formally recognised as entities subject to the state's sales tax regime, implying an acknowledgement of their tax obligations at the time of application.
Refutation of Companies' Basis for Non-Payment

The Sabah government categorically refutes the grounds upon which Repsol and SEA Hibiscus are refusing to remit the SST. The state maintains that the companies' alleged basis for non-payment is invalid and that they continue to hold a liability for the outstanding SST amounts. This includes the accumulation of penalties for delayed or non-payment, underscoring the government's firm stance on enforcing the tax law.

Reading history

Hide →

This history is cleared when the page is closed.

What legal basis does Sabah claim for the State Sales Tax on petroleum?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends